CSE422 Section 002 – Computer Networking Fall 2018 Go-Ba.docx

CSE422 Section 002 – Computer Networking
Fall 2018
Go-Back-N Protocol
Taken from Computer Networking, A Top-Down Approach,
Seventh Edition by Kurose and Ross
CSE422 Section 002 – Computer Networking
Fall 2018
Marketing, 10th Edition, page: 50

January 2006
ACADEMIC VERSION: This sample marketing plan has been
made available to users of
Marketing Plan Pro®, marketing planning software published by
Palo Alto Software, Inc.
For Academic Use
Copyright © Palo Alto Software, Inc., 1998-2006 All rights
reserved.
Confidentiality Agreement
The undersigned reader acknowledges that the information

provided by _______________ in this
marketing plan is confidential; therefore, reader agrees not to
disclose it without the express written
permission of _______________.
It is acknowledged by reader that information to be furnished in
this marketing plan is in all respects
confidential in nature, other than information which is in the
public domain through other means and
that any disclosure or use of same by reader, may cause serious
harm or damage to
_______________.
Upon request, this document is to be immediately returned to
_______________.
___________________
Signature
___________________
Name (typed or printed)
___________________
Date
This is a marketing plan. It does not imply an offering of
securities.
1.0 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . 1
2.0 Situation Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . 1
2.1 Market Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . 1
2.2 The Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . 2
2.2.1 Market Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 3
2.2.2 Market Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 3
2.2.3 Market Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 4
2.2.4 Macroenvironment . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 5
2.3 The Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . 5
2.3.1 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 5
2.3.2 Service Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 6
2.3.3 Positioning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . 6
2.3.4 SWOT Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 7
2.3.4.1 Strengths . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . 7
2.3.4.2 Weaknesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . 7
2.3.4.3 Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . 7
2.3.4.4 Threats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . 8
2.3.5 Historical Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 8
2.4 Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . 9
2.4.1 Direct Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 9
2.4.2 Indirect Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 11
3.0 Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . 11
3.1 Value Proposition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 12
3.2 Critical Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . 12
3.3 Financial Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 12
3.4 Marketing Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 12
3.5 Target Market Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . 13
3.6 Messaging . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 13
3.6.1 Branding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 13
3.7 Strategy Pyramids . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . 14
4.0 Marketing Mix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 16
4.1 Product Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . 16
4.2 Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . 16
4.3 Promotion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . 17

4.3.1 Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . 17
4.3.2 Public Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 18
4.3.3 Direct Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . 18
4.4 Web Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . 19
4.4.1 Website Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 19
4.4.2 Website Marketing Strategy . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . 19
4.4.3 Development Requirements . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 19
4.5 Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . 20
4.6 Implementation Schedule . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . 20
4.7 Sales Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . 21
4.7.1 Sales Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 21
4.7.2 Sales Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 21
5.0 Financials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . 22
5.1 Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 23
5.2 Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . 24
5.2.1 Sales by Partner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . 25
5.2.2 Sales by Segment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 26
5.2.3 Sales by Specialization . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 27
5.3 Expense Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 28
Table of Contents
5.3.1 Expense by Partner . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 29
5.3.2 Expense by Segment . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 30
5.3.3 Expense by Specialization . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 31
5.4 Linking Expenses to Strategy and Tactics . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 32
5.5 Contribution Margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 32
6.0 Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 34
6.1 Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . 34
6.2 Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 35
6.3 Market Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . 35
6.4 Contingency Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 36
6.5 CRM Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . 36
Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 37
Table of Contents
1.0 Executive Summary
Franklin & Moore LLC is an accounting firm offering
traditional accounting services and
business consulting. The firm's reputation is impeccable and is
known throughout the San
Clemente, California area as one of the top three accounting
firms. Franklin & Moore LLC
serves the accounting and financial needs of businesses and
individuals to enable them to
realize their financial goals.
Our target markets include the following.
• Businesses of more that 50 employees and/or $5 million in
annual sales, particularly
those in the medical/health, dental and lodging industries.
• Growth oriented businesses that will benefit from our areas of
pension and retirement
planning specialization.
• Individuals with a net worth of greater than $1.2 million.
Diversifying our revenue streams and leveraging our core
strengths will optimize our position
for the future. We will also implement marketing tactics to

better leverage the firm's total
capacity throughout the year, versus a heavy concentration.
2.0 Situation Analysis
Franklin & Moore LLC offers expertise in all areas of
accounting, bookkeeping, and financial-
based planning. The firm has a solid and loyal customer base in
a market that has experienced
constant but slowing growth in recent years. We have increasing
competition from a variety of
sources. The firm is highly dependant on revenues from tax
planning and preparation for
businesses and individuals. These areas account for more than
75% of total revenues. This
presents a long-term threat to the firm due to competition and
changes in our market. We
must diversify our revenue base to realize ongoing growth and
stability in a changing industry.
2.1 Market Needs
Franklin & Moore LLC provides tangible and intangible value.
Our objective is to minimize the
tax exposure of our clients and adhere to all state and federal
tax laws. The bigger picture
means that we are providing peace of mind for our clients - they
are legally using their
financial resources in the most productive manner possible. We
work to make the complex
understandable. We act in an advisory role to our clients that
will enable them to better
influence and optimize their personal and/or corporate wealth.
We desire to make them more
money and give them a better night's sleep.

Franklin & Moore
Page 1
2.2 The Market
Franklin & Moore LLC is a full-service accounting firm,
serving the personal and business needs
for the community of San Clemente, California and beyond. Our
most important clients are
mid to large-size organizations that rely on our services for
their accounting needs. Tax
preparation and planning is just the beginning as we strive to
become an integral part of their
financial management and planning process. Our best clients
value their time and resources,
and seek to minimize their tax obligations. They do not like
negative surprises. They realize
and appreciate the value in the services we offer, along with the
lost opportunity costs of not
benefiting from our services.
Table: Market Analysis
Market Analysis
2006 2007 2008 2009 2010
Potential Customers Growth CAGR
Large Business 8% 435,000 469,800 507,384 547,975 591,813
8.00%
Growth Business 11% 342,000 379,620 421,378 467,730
519,180 11.00%
Select Individual
Accounts

6% 380,000 402,800 426,968 452,586 479,741 6.00%
Total 8.28% 1,157,000 1,252,220 1,355,730 1,468,291
1,590,734 8.28%
Large Business
Growth Business
Select Individual Accounts
Market Analysis (Pie)
Franklin & Moore
Page 2
2.2.1 Market Demographics
Individual Accounts - The base of individual accounts serves to
offer consistent revenues for
the firm. Approximately 20% of these accounts also depend on
the firm for ongoing financial
planning of their investment portfolios. The balance of the
clients primarily look to the firm for
tax planning and preparation.
Organizations of Over 50 Employees - Our most profitable
business clients fall into the
"over 50 employees" category. These corporate accounts
generate the highest revenues on a
per-hour basis and also generate revenues on the most

consistent basis throughout the year.
Many of these accounts are in the medical/health, dental, and
lodging industries. These clients
are also more likely to look to Franklin & Moore for the widest
range of services the firm offers,
such as assisting with pension planning and investment
management services. Target clients
in this category have annual sales over $3 million, operate more
than one location, serve a
national customer base or more, and are publicly owned.
Organizations Under 50 Employees - Organizations under 50
employees represent some
of the fastest growing clients within the firm. Franklin & Moore
offers attractive services that
understand and meet the needs of these clients. Again, many of
these clients are in select
vertical markets, including medical/health, dental, and lodging
industries. The key clients in
this category have annual sales between $250,000 and
$3,000,000, serve customers in the
Southern California market, have a local or statewide customer
base, and are privately owned.
The long-term strategy is to grow with these clients as they
expand and their needs for our
services increase.
Table: Market Demographics
Market Demographics
Market Segments Benefits Product Attitude Loyalty Status
Buyer-readiness Characteristic
Large Business Quality Questioning Volatile Informed -
Growth Business Future Planning Interested Medium Unaware -
Select Individual

Accounts
Tax Minimization Positive High Ready to buy -
2.2.2 Market Trends
Market trends fall into three general categories: increasing use
of software, and key client
growth.
Increasing use of software - Tax software is one of our major
competitors and continues to
erode revenue from individual clients with simple returns. This
includes products produced by
Intuit with their "Turbo Tax" line and H&R Block Financial
with their "Tax Cut" products.
Software has also been a resource to increase efficiencies within
the firm. For example, we are
producing in excess of 50% more work, and therefore billable
hours, with the same resources
we did in 1995 due to the computer systems now in place.
Key client growth - A cluster of our premier clients have
experienced substantial success
and growth. Meeting these clients' needs will "bring us along"
to offer additional services and
provide an opportunity for us to strategically expand the
services we offer. As we gain
expertise and establish our reputation in these areas, we market
those to other clients and use
them as a point of interest to attract new clients. Pension
planning services are one example of
this phenomenon.
Franklin & Moore

0
100,000
200,000
300,000
400,000
500,000
600,000
2006 2007 2008 2009 2010
Large Business
Growth Business
Select Individual Accounts
Market Analysis (Trends)
2.2.3 Market Growth
The growth rate of our combined target markets has averaged
approximately 8.6%. This is
due to the growth of established businesses as well as movement
into the San Clemente area.
This growth rate has plateaued in recent years and is expected

to remain constant for the
foreseeable future.
0.00%
5.00%
10.00%
15.00%
Market Analysis (C.A.G.R)
Franklin & Moore
Page 4
2.2.4 Macroenvironment
The following issues impact market acceptance and Franklin &
Moore's ability to generate
revenue:
Consumer trends - Those clients that are PC literate are more
likely to consider tax
preparation software as a viable alternative to using our
services.
Economic changes - Two economic changes are taking place,
due to the increasing assets of
the over-70 "depression generation" and their saving behavior.
First, they have
proportionately greater assets than their predecessors,

particularly individuals with assets in
excess of $1.2 million. This group and their heirs may realize
increased benefits from tax and
estate planning. There is also a phenomenon where the children
of this aging population are
more likely to inherit assets and need to integrate these newly
acquired assets with their own.
Both present opportunities for tax and estate planning activities.
Technology advancements - Franklin & Moore has benefited
from firm-based software that
is enabling us to become increasingly more productive with our
existing resources.
Unfortunately, technological advancements are also creating
greater challenges in the
competitive environment.
Competitive activity - Competition has increased on all fronts.
In addition to the impact end-
user software is having on the industry, firms of similar size
have grown and expanded and
there are more sole proprietors and licensed tax consultants and
bookkeeping services. We
consider the market to be at or near saturation.
Political and legal environment - Our business activity is
directly related to changes in
state and federal tax laws. The most negative activity in this
area would be tax laws that lead
to significant simplification of tax laws.
2.3 The Company
Franklin & Moore LLC is an accounting firm offering
traditional accounting services and
business consulting. The firm's reputation is impeccable and is

known throughout the San
Clemente, California area as one of the top three accounting
firms. Franklin & Moore LLC
serves the accounting and financial needs of businesses and
individuals to enable them to
realize their financial goals.
2.3.1 Mission
Franklin & Moore is to be a profitable firm that continues to
meet the financial objectives of the
shareholders and provides a successful environment for its
employees. Our firm will maintain
strong growth as a provider of high quality professional services
to our clients. We will strive to
consistently be perceived as a firm that is professional,
trustworthy, accurate, and timely.
Franklin & Moore will offer the innovative approach clients
need to reach their business and
personal financial goals. Wealth is good.
Franklin & Moore
Page 5
2.3.2 Service Offering
Our services offer expertise to enable our clients to better
realize their financial objectives.
Accomplishing this for our clients falls into these basic service
areas:
Business Clients

• Tax advising, planning, and preparation
• Consulting services, including:
• Industry-specific consulting
• At-risk business consulting
• Corporate-pension consulting
Individual Clients
• Tax advising, planning, and preparation for individuals
• Consulting services, including:
• Personal Financial Planning (general)
• Pension planning
• Retirement planning
Providing quality service is also critical. Our business and
individual clients judge our
competence based on how we treat them. This is their primary -
and in many cases their only -
measurement of our capabilities. They ask themselves the
following about our firm:
• Do they act in a professional manner?
• Do they know who I am?
• Do they remember my name?
• Are they genuinely concerned about my best interest?
• Will they actively support and defend their advice and council
if needed?
Our services must be strong enough that each of our clients will
answer positively to these
questions.
2.3.3 Positioning

Franklin & Moore LLC offers a unique team of CPAs and a
professional accounting and
bookkeeping staff with proven expertise as business
consultants. We do more than prepare
taxes. We also provide a variety of valuable services that enable
a business to optimize their
profitability and minimize their tax exposure. We will work to
offer our services in an
innovative manner to create a source for business planning
solutions that will be difficult to
emulate. We offer a premium level of service and expect to
receive premium compensation for
those services.
Franklin & Moore
Page 6
2.3.4 SWOT Summary
The SWOT analysis addresses the strengths and weakness
within Franklin & Moore and the
opportunities and threats that exist in our environment. This
analysis highlights areas to be
leveraged and points out where we must improve within the firm
and within our industry and
market.
2.3.4.1 Strengths
• A core of CPAs that have established solid reputations within
our market
• Highly experienced staff with an increase in total billable
hours.

• A state-of-the-art computer system, utilizing the latest
software that continues to
enhance our productivity and expand our capacity.
• High client retention, providing consistent referrals to the
firm.
• Expertise in specific vertical markets of medical/health,
dental, and lodging industries.
• Three CPAs, our "rainmakers," who bring in an estimated
65% of the new client work.
2.3.4.2 Weaknesses
• Over-dependence on tax preparation work for individual and
business clients and,
therefore, a lack of diversification in our revenue sources.
• Inability to generate sufficient billable hours in the off-
season, based on the current
capacity of our systems and full-time staff.
• Difficulty in retaining aggressive non-partner CPAs, as they
move to smaller firms that
will make them partners sooner.
• Being perceived as a non-progressive, "too traditional" firm
and maybe overlooked as a
viable option for new clients.
• Some individuals within the professional staff do not have an
understanding of or a
commitment to the marketing activities of the firm.
2.3.4.3 Opportunities
• Benefiting from the ongoing increase in population to the San

Clemente area,
particularly for the retirement segment.
• Increasing income levels of the population over the age of 60
that have aggressively
saved for retirement and have increasingly complex tax
planning, tax preparation, and
estate planning needs.
• Leveraging the positive perception business has about locating
in this section of Orange
County.
• Growth that is occurring in three industries where we possess
expertise;
health/medical, dental, and lodging.
Franklin & Moore
Page 7
2.3.4.4 Threats
• Increased competition from sole practitioners and new firms.
• Continued sophistication and affordability of software that
replaces or minimizes the
role of a CPA for tax preparation, accounting, and bookkeeping
services.
• General perceptions that accounting firms are only used for
tax-related aspects of
business rather than as a valuable resource for broader business
consulting issues.

• Some organizations planning for an Initial Public Offering
(IPO) perceive they must use
a national accounting firm.
• State and/or federal tax laws that lead to gross simplification,
such as legislation
leading to a flat income tax, which would result in reducing
billable hours for business
and individual taxes.
2.3.5 Historical Results
Our past marketing activities have produced mixed results. The
following is a summary of
those activities and categorizes them in terms of "successful"
and "unsuccessful." A successful
marketing activity produced billable hours that were equal to or
greater than the total
investment into the activity, excluding time. An unsuccessful
activity generated traceable
revenue but was less than the cost of the effort.
Successful -
• Referral-based activities; Professional referrals, Individual
referrals.
• Selective Sponsorships: Southern California Opera, Youth
Sports.
• Yellow pages: Competitive size ads for our area.
• Board member participation: Lodging Association of Southern
California, San Clemente
City Commission on Land Use, California Opera, Youth Sports.
Unsuccessful -

• Advertising (non-sponsorship based).
• Service club participation; Rotary, Lions, Sierra Club, Boy
Scouts of America.
Additional work is required to better track revenues resulting
from each of our marketing
activities.
Table: Historical Data
Historical Data
Variable 2003 2004 2005
Industry Revenue $10,006,800 $10,905,600 $11,692,000
Company Market Share 12% 13% 13%
Company Revenue $1,200,816 $1,363,200 $1,519,960
Industry Variable Costs $1,318,100 $1,448,400 $1,539,200
Company Variable Costs $120,082 $136,320 $151,996
Industry Gross Contribution
Margin
$8,688,700 $9,457,200 $10,152,800
Company Gross Contribution
Margin
$1,080,734 $1,226,880 $1,367,964
Marketing Expenses $4,000 $4,400 $4,840
Company Net Contribution Margin $1,076,734 $1,222,480
$1,363,124
Franklin & Moore
Page 8

2.4 Competition
Competitors fall into four primary categories; other firms, sole
practitioners, licensed tax
consultants and bookkeeping services, and software.
Other CPA firms - A total of 5 firms conduct business in our
area that are comparable to
Franklin & Moore in size and capabilities, including one that is
a national firm. These firms have
staff and technology resources similar to ours, although their
focus and areas of specialization
vary.
Sole practitioners - An estimated 23 sole practitioners exist in
the immediate area. This
ranges from individuals that have been in business for over 20
years to those that are in their
sixth month. Their resources are limited in terms of staff and
technology.
Licensed tax consultants and bookkeeping services - The "Type
I" individual client, with
straightforward and uncomplicated needs, often looks to
licensed tax consultants and
bookkeeping services in lieu of the services we offer. This
client type may consider these
preparers on the basis of "self preparation avoidance" rather
than from seeking proactive
advice and council.
Software - Increasing competition from individual software,
particularly Intuit's "Turbo Tax"

and H&R Block Financials' "Tax Cut."
2.4.1 Direct Competition
The following companies are direct competition to Franklin and
Moore. More about them are
discussed in the following tables and charts.
1. Huber & Huber PC - Are our strongest competitors. they have
a strong image and are a
very stable company growing at a good pace.
2. Lang Pauls & Rowe - Come in a close second to H&H. They
too are well known in the
market and offer quality services.
3. Wright & Ellison - The biggest threat W&E pose to us is the
strong strategic alliances
that they have. These alliances have positioned them to grow
quickly and they could
become a bigger threat.
4. Insight - This is our weakest competitor. They have not been
around for very long and
struggle with providing quality services backed with expertise.
Table: Growth and Share Analysis
Growth and Share
Competitor Price Growth Rate Market Share
Huber & Huber PC $150 10% 9%
Lang Pauls &
Rowe
$145 7% 14%

Wright & Ellison $155 6% 11%
Insight $125 16% 6%
Franklin & Moore
LLC
$160 9% 15%
Average $147.00 9.60% 11.00%
Total $735.00 48.00% 55.00%
Franklin & Moore
Page 9
Table: Competitive Analysis
Competitive Analysis
#1 #2 #3 #4 #5 #6
Competitor H & H LP & R W & E Insight Sole Pract. Tax
Services
Product and/or Service H & H LP & R W & E Insight Sole
Pract. Tax Services
Image H & H LP & R W & E Insight Sole Pract. Tax Services
Quality H & H LP & R W & E Insight Sole Pract. Tax Services
Quality 9 8 7 5 4 5
Selection 8 9 8 6 9 4
Price 8 9 6 5 3 2
Other 8 7 8 6 5 8
Location and Physical
Appearance

H & H LP & R W & E Insight Sole Pract. Tax Services
Business Traffic 5 9 8 8 5 3
Appearance 9 9 8 7 5 4
Visibility 8 7 8 5 5 4
Convenience Factors 7 8 7 6 5 4
Other 0 0 0 0 0 0
Added Value Factors H & H LP & R W & E Insight Sole Pract.
Tax Services
Pre and Post Sales Service H & H LP & R W & E Insight Sole
Pract. Tax Services
Experience H & H LP & R W & E Insight Sole Pract. Tax
Services
Expertise H & H LP & R W & E Insight Sole Pract. Tax
Services
Pre and Post Sales Service 9 8 7 5 4 5
Experience 8 7 6 7 5 4
Expertise 9 9 9 7 5 4
Reputation 8 9 8 5 5 2
Image 9 6 6 4 5 2
Stability 8 9 7 5 6 2
Strategic Alliances 7 8 9 5 6 2
Other 0 0 0 0 0 0
Other Marketing Activities H & H LP & R W & E Insight Sole
Pract. Tax Services
Established Sales Channels 7 7 9 5 4 3
Advertising 2 8 7 9 5 3
Post-purchase Support 7 7 7 6 5 6
Incentives 6 6 6 9 4 3
Loyalty Components 9 6 6 6 6 3
Other 0 0 0 0 0 0
Total 151 156 147 121 101 73

Franklin & Moore
Page 10
4%
6%
8%
10%
12%
14%
16%
18%
75 80 85 90 95 100 105
Huber & Huber PC
Lang Pauls & Rowe
Wright & Ellison
Insight
Franklin & Moore LLC
Competitor by Growth and Share

2.4.2 Indirect Competition
Tax Software is our largest indirect competitor.
As the public becomes more comfortable with home computer
technology, they are
increasingly relying on tax software packages like Intuit's
"Turbo Tax" and H&R Block
Financials' "Tax Cut." However, for the kinds of clients we
pursue, these software packages
lack the nuances and prompting that yield best results.
3.0 Marketing Strategy
Our marketing strategies are based on meeting the needs of
existing and future clients. We
will do this through leveraging internal and external business
strengths and understanding the
competitive environment. All marketing strategies work toward
supporting our mission
statement and realizing our stated goals.
Our marketing strategies fall into these three categories:
1. Revenue diversification, including service and industry
specialization.
2. Fixed fee structure focus.
3. Marketing awareness training.
Franklin & Moore
Page 11

3.1 Value Proposition
Providing quality service is critical. Our business and
individual clients judge our competence
based on how we treat them. This is their primary - and in many
cases their only -
measurement of our capabilities. Our Value Proposition to the
client is that we will do their
taxes, financial planning, business accounting, etc. better then
they do it. We will work closely
with our clients to make sure we know what their goals are,
where they are financially and
where they want to be in the future so that every service we
provide is personal and custom-
tailored for our clients.
3.2 Critical Issues
The firm appears to be approaching a "mature" category. We
have relatively low major
opportunities, fairly low threats, limited growth potential, and
relatively low risk.
Critical issues for Franklin & Moore include:
• Retaining clients is essential and will be determined by
maintaining our reputation built
upon professionalism, trust, accuracy, and timeliness.
• Continuing to leverage our computer-based capabilities within
the firm on a cost-
effective basis.
• Tracking results to better understand which marketing
activities offer the best return.
• Focusing on key market segments that will produce the

greatest return.
• Educating our staff so everyone takes a role in marketing the
firm and not leaving this
responsibility to the few "rainmakers" that now account for a
large percentage of new
business.
3.3 Financial Objectives
1. Revenues of $1.6 million by year-end to realize a growth rate
of 8.25% compared to
the previous year.
2. Non-tax preparation revenues greater than 25% of total
billing.
3. Payroll expenses to increase no more than 8% compared to
the previous year.
3.4 Marketing Objectives
1. To realize an annual growth rate of 8.25% greater than the
previous year.
2. To diversify our revenue stream through increased business
consulting (non-tax
related) activities to account for 26% or more of total revenues.
3. To create a visible profile through establishing reciprocal
referral sources with the
following:
• (3) major banks
• (1) credit union
• (2) major law firms
• (2) brokerage firms

4. Train the entire staff to understand, appreciate, and reinforce
their role in marketing
the firm.
Franklin & Moore
Page 12
3.5 Target Market Strategy
Our primary target markets include these three areas:
1. Established businesses of more than 50 employees that value
an accounting firm that
offers comprehensive business planning services, particularly
those in the
medical/health, dental, and lodging industries.
2. Growing businesses of less than 50 employees that need our
services now and will rely
on them to a greater extent as their businesses and requirements
grow, particularly
those that will benefit from areas of specialization, such as
pension and retirement
program planning.
3. Individual clients with a net worth in excess of $1.2 million
that are concerned about
the current earning capabilities of their assets and what will
happen to those assets
when they are passed to their heirs.
3.6 Messaging

Franklin & Moore LLC offers a unique team of CPAs and a
professional accounting and
bookkeeping staff with proven expertise as business
consultants. We do more than prepare
taxes. We also provide a variety of valuable services that enable
a business to optimize their
profitability and minimize their tax exposure. We want to make
sure that our marketing never
loses site of our strengths as a company:
Expertise and Personal Service to Maximize our Clients'
Finances
3.6.1 Branding
Franklin & Moore LLC needs to brand itself as the
professional, expert, personal accountants.
It is important that people associate Franklin & Moore LLC
with expertise and personal
service. Our marketing materials both offline and online will
need to reflect this brand
message.
Table: Target Market Messaging
Target Market Messaging
Market Segments Messaging
Large Business Improve profitability, reduce taxes
Growth Business Understand opportunities for financial growth
Select Individual Accounts Personalize the financial tax and
planning process
Franklin & Moore
Page 13

3.7 Strategy Pyramids
Franklin & Moore's strategy is focused on leveraging our
existing strengths. We will strive to
emphasize those strengths that cannot be duplicated by our
competitors or through the use of
software. This is an important factor in differentiating the firm.
All tactics to implement this
strategy include leveraging the quality of our work and our in-
house computer capabilities.
We have filled out three strategies in the strategy pyramids
below.
Strategy Pyramid
Revenue Diversification
Industry specialization through expanding in medical/health,
dental, and lodging clients.
Identify potential new clients
Additional involvement in industry associations
Service specialization and building on proven skills.
Promotion of areas of specialization
Utilize our website to communicate and demonstrate these skills
Leveraging contacts in vertical markets

Expertise-based marketing
Articles in industry publications
Presentations at regional or national industry conferences
Strategy Pyramid 2
Franklin & Moore
Page 14
Fixed Fee Structure Emphasis
Support System
Program 4-A Identification of high potential fixed fee work
Implement tracking program
Increase fixed fee billing
Training regarding fixed fee approach
Implement incentive program for offering and acquiring
Strategy Pyramid 3
Marketing Awareness Training
Train all employees on the firm's marketing strategy and their
role

Individual training for all partners and staff CPAs
Initial overview of marketing plan
Define roles based on position
Formalization of referral program
Referral log automated for tracking performance
Identify high-potential professional contacts for referral sources
Generate monthly reports for all employees
Franklin & Moore
Page 15
4.0 Marketing Mix
Our experience has proven that the most significant factor in
acquiring new clients is a direct
result of referrals from our existing client base. In 2005, more
than 80% of our new clients
directly or indirectly resulted from a referral by an individual or
business client. Client retention
is essential. Receiving referrals from them will determine our
success or failure. People ask
other people they know, trust, and share a similar financial
position to tell them what firm or
CPA to use. It is as simple as that. Our marketing mix will
consistently work to optimize the
volume and quality of those referrals.

4.1 Product Marketing
We need to fulfill the promise we make to each client - to
provide them with the resources
they need to reach their business and personal financial goals,
with unwavering confidence in
our firm throughout that process and, ultimately, throughout
their lives.
4.2 Pricing
Franklin & Moore will seek to provide a premium product at a
premium price that offers the
best overall value to our clients. Ultimately, our clients will
realize greater wealth as a result of
their ability to optimize profitability and minimize their tax
obligations.
Client billing rates reflect the level of expertise required to
perform the work. Our average
hourly billing rates are shown in the Price List table, below.
As mentioned in our marketing strategy, we will also work to
bill more of our work on a fixed-
fee basis, particularly the work that can better utilize our
computerized capabilities. These fees
will be based on the value offered the client, not the internal
time required to complete the
task.
Table: Price List
Price List
Item Description Per Unit Price
Partner per hour $165

Staff CPA per hour $110
Accounting Staff per hour $65
Bookkeeping Staff per hour $45
Franklin & Moore
Page 16
4.3 Promotion
We will promote the firm through these critical marketing
components:
1. Leverage referrals from professional contacts and individual
clients to make this an
integral part of how we conduct business.
2. Enhance our profile within our targeted industries and areas
of specialization by
increasing our reputation for possessing unique expertise in
these areas.
3. Have the expectation that all employees will take on the task
of marketing the firm as
they approach their other areas of responsibility. We will track,
give feedback, and
acknowledge efforts, accomplishments, and results from these
actions.
4. Continue to use the technology we have, including our in-
house computer capabilities
and our website. Both possess incredible potential for future
differentiation in an
increasingly competitive market.

We will focus on getting referrals from:
• major banks
• credit unions
• major law firms
• brokerage firms
• current clients
Our referrals hinge upon key relationships with other companies
in financial and professional
services. Often a client will be with their lawyer, banker, stock
broker, etc. and realize that
they need accounting and financial planning help. Sometimes
the professional they are with
might want to suggest that they see an accounting firm. By
building these marketing
relationships we will also build a sales pipeline for new clients.
4.3.1 Advertising
We will advertise only in local newspapers and trade magazines,
as we want to attract local
clients. We are not big enough to spend money on national
advertising in national magazines.
We will also advertise on "Local" portals online making sure
that people always find us when
they are looking for an accounting and finance firm in this area.
Our website needs to clearly
communicate our brand and positioning so that when we drive
traffic to it -- it results in leads
into our office.
Table: Advertising Milestones

Milestones
Advertising Start Date End Date Budget Manager Department
Print Ad 1/1/2006 6/15/2006 $5,000 John Marketing
Brochures 1/1/2006 1/15/2006 $5,000 John Marketing
Total Advertising Budget $10,000
Franklin & Moore
Page 17
4.3.2 Public Relations
It will be important for us to use PR to maintain our image in
the community, and to remain
known as THE experts in our industry. We will issue Press
Releases whenever one of our
partners speaks at an event, or teaches a class. We will also
issue press releases when we get
big clients on board, assuming we have the client's permission.
We will use our PR agency to book interviews related to topics
in our industry to continue to
build the image of our expertise. We must stay focused in our
PR efforts, as we do not want to
spend more then a few thousand dollars a month on PR
expenses.
Table: PR Milestones
Milestones
PR Start Date End Date Budget Manager Department

Press Kit 1/1/2006 4/15/2006 $4,000 Mary Marketing
Press Releases 1/1/2006 12/15/2006 $3,000 Mary Marketing
Total PR Budget $7,000
4.3.3 Direct Marketing
We will send out direct marketing mainly to current clients. We
will send out a quarterly tax
and financial planning newsletter, as well as tax planning
information twice per year. We will
use a direct marketing agency to make sure that our mailings
look professional and use
professional designs and high quality content.
Table: Direct Marketing Milestones
Milestones
Direct Marketing Start Date End Date Budget Manager
Department
Newsletter 1/1/2006 5/15/2006 $10,000 Peter Marketing
Tax Brochure 1/1/2006 4/15/2006 $6,000 Peter Marketing
Financial Planning Brochure 1/1/2006 6/15/2006 $6,000 Peter
Marketing
Total Direct Marketing Budget $22,000
Franklin & Moore
Page 18
4.4 Web Plan
Our website is currently live and working, but needs some
revamping, both of content and

features. The main focus of our Internet presence is to serve as
a permanent, always-
accessible information and branding tool for prospective clients,
with a secondary goal of
providing client-only features.
4.4.1 Website Goals
Our website goals are as follows:
1. Convey professional, expert, yet personal brand
2. Communicate with current clients
3. Prospect future clients
4.4.2 Website Marketing Strategy
Our web site marketing strategy is very simple. We need to have
an up-to date very
professional website that reflects the brand and image of our
company. When a lawyer, or
banker or stock broker refers a client to us, we want them to be
able to visit us online and get
a very good sense of who we are, what we do, and why we are
the best.
We will do some very basic pay-per-click online advertising in
local portals in order to attract
clients who are searching for our services. Other then that our
website will be used mainly to
attract word of mouth referrals and will be used to continue to
market and communicate with
our existing clients.
4.4.3 Development Requirements
Our website is already up and running. We need to have:

1. A client-only secure area where clients can access relevant
information to their account
2. We need to be able to send regular newsletters to clients and
prospective clients
3. We need to have fresh updated content relevant to our
industry
4. We need to revamp our "About the Company" section of our
website.
Franklin & Moore
Page 19
Table: Pay-per-click ROAS
Pay-Per-Click
ROAS
Network Monthly
Cost
Clicks
Leads
Generated
Orders
Monthly
Revenue
ROAS
Cost-per-

click
Cost-per-
lead
Google $500 50 2 1 $2,000 400% $10.00 $250.00
Yahoo! $250 20 1 1 $1,000 400% $12.50 $250.00
Other $0 0 0 0 $0 0% $0.00 $0.00
Total 750 70 3 2 3000 267% $7.50 $166.67
Table: Website Milestones
Milestones
Web Development Start Date End Date Budget Manager
Department
Secure Client Log-in 1/1/2003 3/15/2003 $10,000 Chris Web
Updated Content 1/1/2003 12/15/2003 $10,000 Chris Web
Newsletter Capability 1/1/2003 1/15/2003 $4,000 Chris Web
Total Web Development Budget $24,000
4.5 Service
Our business and individual clients judge our competence based
on how we treat them. This is
their primary - and in many cases their only - measurement of
our capabilities. We must
ensure that each of our clients will answer positively to these
questions:
• Do they act in a professional manner?
• Do they know who I am?
• Do they remember my name?
• Are they genuinely concerned about my best interest?
• Will they defend their advice and council if needed?
4.6 Implementation Schedule

The milestones graphic illustrates key implementation
activities. Each partner understands the
programs, and they have been assigned to oversee specific
actions involved with each. We will
track plan-vs.-actual results for each program. Status and
progress will be addressed at the
monthly partners meeting and reported to all of our staff in our
monthly bulletin.
This will be a topic of focus at the end-of-the-year partners'
meeting to evaluate annual results
and validate or challenge the marketing plan for the upcoming
year.
Franklin & Moore
Page 20
Table: Milestones
Milestones
Advertising Start Date End Date Budget Manager Department
Print Ad 1/1/2006 6/15/2006 $5,000 John Marketing
Brochures 1/1/2006 1/15/2006 $5,000 John Marketing
Total Advertising Budget $10,000
PR Start Date End Date Budget Manager Department
Press Kit 1/1/2006 4/15/2006 $4,000 Mary Marketing
Press Releases 1/1/2006 12/15/2006 $3,000 Mary Marketing
Total PR Budget $7,000
Direct Marketing Start Date End Date Budget Manager
Department
Newsletter 1/1/2006 5/15/2006 $10,000 Peter Marketing

Tax Brochure 1/1/2006 4/15/2006 $6,000 Peter Marketing
Financial Planning Brochure 1/1/2006 6/15/2006 $6,000 Peter
Marketing
Total Direct Marketing Budget $22,000
Web Development Start Date End Date Budget Manager
Department
Secure Client Log-in 1/1/2003 3/15/2003 $10,000 Chris Web
Updated Content 1/1/2003 12/15/2003 $10,000 Chris Web
Newsletter Capability 1/1/2003 1/15/2003 $4,000 Chris Web
Total Web Development Budget $24,000
Other Start Date End Date Budget Manager Department
Name me 1/1/2003 1/15/2003 $0 ABC Department
Other 1/1/2003 1/15/2003 $0 ABC Department
Total Other Budget $0
Totals $63,000
4.7 Sales Plan
Our sales plan hinges on making a good impression from the
moment clients or potential
clients walk in the door or call. It costs us much more to gain a
new client than to retain an
existing one, so our main sales goal is to increase billable hours
from existing clients.
4.7.1 Sales Strategy
We should focus our strategy on increasing billing hours with
current clients while still giving
them a lot of value for the money they spend, as well as
converting new clients.
4.7.2 Sales Process

Once we get a new client referral we will make sure we set up a
welcome meeting for them at
no charge. This way the new client will have an opportunity to
spend at least one hour with the
relevant professional asking questions and understanding the
services that we offer.
All prospective clients will also receive a packet with relevant
information:
1. How much we charge per hour
2. What services we offer
3. How we implement those services
4. Which account manager will see them though all services and
will be their "go to"
person
5. Happy client testimonials
Franklin & Moore
Page 21
Table: Sales Account Plan
Sales Account Plan
Target Accounts History Status Annual Sales Potential Key
Account Manager
Bid Company A none internal
services
$80,000 0%

Bid Company B none competitor $55,000 0%
Bid Company C none none $75,000 0%
Existing Key Accounts History Status Annual Sales Potential
Key Account Manager
Client 1 6 years strong, loyal $45,000 0%
Client 2 2 years satisfied $35,000 0%
Client 3 1 year exremely
satisfied
$20,000 0%
Total $310,000
5.0 Financials
Our marketing plan requires annual revenues of $1,600,000 for
this year. We anticipate that
we will have revenues of more than $2,500,000 within 5 years.
Our marketing expenses will
equate to an average of 2.5% of total sales throughout.
The marketing plan is based on these three parameters:
1. Increasing our efficiencies through better use of our
facilities and expertise. Variable
costs will be reduced, as we are able to make use of the capital
investment we have in
our systems. We will invest in these systems with the
expectation that we will benefit
as we have in the past from their capabilities. It provides us a
competitive edge many
of our competitors cannot afford.
2. We will continue to invest in marketing activities based on a
percent of total revenues.

As our revenues increase, so will our marketing resources.
3. We will forecast and track revenues on a detail basis to
provide objective feedback
regarding progress in the areas of industry expertise,
specialization, and client revenue
sources by type.
Franklin & Moore
Page 22
5.1 Break-even Analysis
Our variable costs are less than 38% of revenues. This is a
result of our fixed costs including
our facility, computer and technology expenses, and our
salaried staff. Variable costs include
temporary/seasonal hires, compensation for CPAs based on
performance, and client demands
that require travel and other per-job based expenditures.
Variable costs are expected to
continue to decrease as a percent of revenues as we strive to
further benefit from technology
and become less dependent on wages and salaries.
Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even $42,283
Assumptions:
Average Percent Variable Cost 31%

Estimated Monthly Fixed Cost $42,250
($60,000)
($40,000)
($20,000)
$0
$20,000
$40,000
$60,000
$0 $16,000 $32,000 $47,000 $63,000 $79,000
Monthly break-even point
Break-even point = where line intersects with 0
Break-even Analysis
Franklin & Moore
Page 23
5.2 Sales Forecast
Revenues for this year are based on a 5% growth rate. This is
conservative and will be more
challenging as we work to diversify our revenue base.

Table: Sales Forecast
Sales Forecast
2006 2007 2008 2009 2010
Sales
Business Clients - Tax Preparation $448,000 $447,200 $480,000
$614,400 $787,000
Business Clients - Tax Planning $272,000 $258,000 $260,000
$304,200 $356,000
Business Clients - General
Consulting
$144,000 $206,400 $300,000 $324,000 $350,000
Business Clients - Other $112,000 $154,800 $200,000 $216,000
$233,000
Individual Clients - Tax Preparation $352,000 $309,600
$300,000 $360,000 $432,000
Individual Clients - Tax Planning $128,000 $137,600 $140,000
$152,600 $166,000
Individual Clients - Personal Finance
Consulting
$96,000 $154,800 $240,000 $256,800 $275,000
Individual Clients - Other $48,000 $51,600 $80,000 $82,400
$85,000
Total Sales $1,600,000 $1,720,000 $2,000,000 $2,310,400
$2,684,000
Direct Cost of Sales 2006 2007 2008 2009 2010
$149,800 $150,500
Business Clients - Tax Planning $89,760 $91,200 $92,800

$93,400 $94,500
Business Clients - General
Consulting
$47,522 $48,500 $49,500 $50,500 $52,000
Business Clients - Other $36,960 $37,500 $38,500 $39,500
$40,000
Individual Clients - Tax Preparation $95,039 $96,500 $97,500
$98,500 $99,500
Individual Clients - Tax Planning $34,561 $36,000 $37,200
$38,300 $39,200
Consulting
$25,921 $26,500 $27,500 $28,500 $29,000
Individual Clients - Other $12,960 $13,500 $14,500 $15,500
$16,000
Subtotal Direct Cost of Sales $490,562 $497,267 $506,050
$514,000 $520,700
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000 Business Clients - Tax Preparation

Business Clients - Tax Planning
Business Clients - General Consulting
Business Clients - Other
Individual Clients - Tax Preparation
Individual Clients - Tax Planning
Individual Clients - Personal Finance Consulting
Individual Clients - Other
Sales Monthly
Franklin & Moore
Page 24
5.2.1 Sales by Partner
As the projection shows, we track revenue by partner, but a
significant amount of the total
revenue comes from the billing of the staff itself. Craig Moore
will be retiring in the year 2010.
The detail for this table is included in the appendices.
Table: Sales Breakdown by Partner
Sales by: Partner
2006 2007 2008 2009 2010

Sales
Franklin $193,300 $223,000 $230,000 $234,000 $236,000
Moore $169,600 $200,000 $207,000 $150,000 Retiring
Benning $167,000 $195,000 $202,000 $210,000 $230,000
Sonnett $152,800 $184,500 $189,000 $195,000 $200,000
Cummings $154,100 $185,000 $190,000 $196,000 $200,000
Williams $145,800 $178,000 $186,000 $192,000 $200,000
Other $617,400 $554,500 $796,000 $1,133,400 $1,618,000
Total $1,600,000 $1,720,000 $2,000,000 $2,310,400 $2,684,000
Average $228,571 $245,714 $285,714 $330,057 $447,333
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Franklin
Moore
Benning
Sonnett
Cummings

Williams
Other
Sales Breakdown by Partner Monthly
Franklin & Moore
Page 25
5.2.2 Sales by Segment
Our most important markets are our "large" and "growth"
business clients. We have made
strides to focus on revenues from these more profitable and
faster-growing segments. This
lowers the dependency on our "individual" client base, and our
goal is to continue this focus for
the future.
Table: Sales Breakdown by Segment
Sales by: Segment
2006 2007 2008 2009 2010
Sales
Large Business $672,850 $702,000 $815,000 $889,000
$1,000,000
Growth Business $538,500 $516,000 $600,000 $694,000
$900,000
Individuals $388,650 $502,000 $585,000 $727,400 $784,000
Total $1,600,000 $1,720,000 $2,000,000 $2,310,400 $2,684,000

Average $533,333 $573,333 $666,667 $770,133 $894,667
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
Large Business
Growth Business
Individuals
Sales Breakdown by Segment Monthly
Franklin & Moore
Page 26
5.2.3 Sales by Specialization
Our three targeted areas of specialization in medical/health,

dental, and lodging represent a
relatively small portion of total income, but these are some of
the most profitable accounts for
the firm. These areas also offer the possibility of ongoing
monthly billing opportunities to
spread billing throughout the year, versus the heavy
concentration of activity around the tax
schedule. Manufacturing still represents a significant number of
annual billable hours, but the
low to no-growth rate no longer makes this an attractive
segment.
Table: Sales Breakdown by Specialization
Sales by: Specialization
2006 2007 2008 2009 2010
Sales
Medical/Health $27,200 $309,600 $380,000 $472,500 $550,000
Dental $24,000 $275,200 $340,000 $405,000 $500,000
Lodging $192,000 $223,600 $280,000 $337,500 $400,000
Manufacturing $64,000 $68,800 $60,000 $67,500 $75,000
Individual Revenues $304,000 $550,400 $620,000 $652,500
$67,500
Other $988,800 $292,400 $320,000 $375,400 $1,091,500
Total $1,600,000 $1,720,000 $2,000,000 $2,310,400 $2,684,000
Average $266,667 $286,667 $333,333 $385,067 $447,333
$0
$50,000
$100,000
$150,000

$200,000
$250,000
$300,000
Medical/Health
Dental
Lodging
Manufacturing
Individual Revenues
Other
Sales Breakdown by Specialization Monthly
Franklin & Moore
Page 27
5.3 Expense Forecast
Marketing expenses will correlate with firm revenues. This is
based on a 2.5% factor of annual
revenues. These expenses include any client development
activities that promote the firm or
any individual within the firm.

Each partner has an individual budget for his or her marketing
activities. The combined totals
for those by marketing line item are listed in the following
table.
Table: Marketing Expense Budget
Marketing Expense Budget 2006 2007 2008 2009 2010
Advertising $4,848 $5,000 $5,200 $5,400 $5,600
Dues $1,940 $2,250 $2,450 $2,650 $2,800
Meals & Entertainment $2,020 $2,400 $2,600 $2,800 $3,000
Printed Materials $9,700 $10,800 $12,900 $14,500 $16,000
Public Relations $5,600 $5,850 $6,350 $6,550 $7,200
Sponsorships $6,868 $7,200 $7,650 $7,800 $8,400
Travel $4,444 $4,600 $4,900 $5,200 $5,600
Web Support $4,848 $5,500 $6,000 $6,800 $7,500
Other $600 $600 $800 $1,000 $1,200
------------ ------------ ------------ ------------ ------------
Total Sales and Marketing Expenses $40,868 $44,200 $48,850
$52,700 $57,300
Percent of Sales 2.55% 2.57% 2.44% 2.28% 2.13%
$0
$1,000
$2,000
$3,000
$4,000
$5,000

$6,000
$7,000
Advertising
Dues
Meals & Entertainment
Printed Materials
Public Relations
Sponsorships
Travel
Web Support
Other
Monthly Expense Budget
Franklin & Moore
Page 28
5.3.1 Expense by Partner
As the table and chart shows, with additional information in the

appendices, a majority of our
expenses are managed by the seven partners, not by marketing.
Each partner has an expense
allocation that is overseen by marketing to deal with specific
client development programs,
marketing of expertise, and related projects. Marketing holds
each partner accountable,
although not always an easy task, to leverage these client
development resources for the best
return possible.
Table: Expense Breakdown by Partner
Expenses by Partner
2006 2007 2008 2009 2010
Expenses
Franklin $5,000 $6,000 $6,500 $6,750 $7,000
Moore $5,000 $6,000 $6,500 $6,750 $0
Benning $4,850 $5,500 $6,000 $6,250 $6,600
Sonnett $4,800 $5,500 $6,000 $6,250 $6,600
Cummings $4,650 $5,000 $6,000 $6,250 $6,600
Williams $4,250 $5,000 $5,500 $6,000 $6,500
Moore $4,100 $5,000 $5,500 $6,000 $6,500
Other $8,218 $6,200 $6,850 $8,450 $17,500
Total $40,868 $44,200 $48,850 $52,700 $57,300
Average $5,109 $5,525 $6,106 $6,588 $7,163
$0
$1,000
$2,000
$3,000

$4,000
$5,000
$6,000
$7,000
Franklin
Moore
Benning
Sonnett
Cummings
Williams
Moore
Other
Expense Breakdown by Partner Monthly
Franklin & Moore
Page 29
5.3.2 Expense by Segment

Consistent with our growth strategy, a majority of our expenses
are dedicated towards
marketing to businesses rather than individuals. Our marketing
expenses are targeted to
communicate our expertise and how those skills will benefit
business clients.
Table: Expense Breakdown by Segment
Expenses by Segment
2006 2007 2008 2009 2010
Expenses
Business $26,900 $30,000 $34,000 $36,000 $39,000
Individual $11,000 $12,000 $13,500 $15,400 $17,000
Other $2,968 $2,200 $1,350 $1,300 $1,300
Total $40,868 $44,200 $48,850 $52,700 $57,300
Average $13,623 $14,733 $16,283 $17,567 $19,100
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000

Business
Individual
Other
Expense Breakdown by Segment Monthly
Franklin & Moore
Page 30
5.3.3 Expense by Specialization
The following table and chart show our expenses broken down
by specialization.
Table: Expense Breakdown by Specialization
Expenses by
Specialization
2006 2007 2008 2009 2010
Expenses
Medical/Health $9,800 $0 $12,000 $15,000 $17,000
Dental $9,800 $0 $12,000 $13,500 $15,000
Lodging $8,200 $0 $10,000 $12,000 $14,000
Other $13,068 $44,200 $14,850 $12,200 $11,300
Total $40,868 $44,200 $48,850 $52,700 $57,300
Average $10,217 $11,050 $12,213 $13,175 $14,325

($1,000)
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
Medical/Health
Dental
Lodging
Other
Expense Breakdown by Specialization Monthly
Franklin & Moore
Page 31

5.4 Linking Expenses to Strategy and Tactics
Our marketing expenses represent a small portion of total
revenue generated, as illustrated on
the following graph. Regardless, marketing-based efforts and
our marketing expenditures
must produce results. Our Marketing Director tracks this
correlation and reports to the
partners regarding our progress at our scheduled meetings. We
expect to see our strategies
impact the bottom line in the preferred areas. Our relatively
conservative approach appears to
be a good fit. An unexpected decrease in revenues will impact
our marketing budget, and we
will address this issue if required.
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
Sales
Expenses

Sales vs. Expenses Monthly
5.5 Contribution Margin
Contribution margins should increase as a result of these
factors:
1. Increased efficiencies and revenue through specialization.
2. Increased efficiencies through use of our available
technology.
3. Economies of scale from growth and better utilization of
capacity.
4. More evenly spreading work out throughout the calendar
year.
Franklin & Moore
Page 32
Table: Contribution Margin
Contribution Margin
2006 2007 2008 2009 2010
Sales $1,600,000 $1,720,000 $2,000,000 $2,310,400 $2,684,000
Direct Cost of Sales $490,562 $497,267 $506,050 $514,000
$520,700
Other Variable Costs of Sales $4,855 $0 $5,200 $5,600 $5,850
------------ ------------ ------------ ------------ ------------
Total Cost of Sales $495,417 $497,267 $511,250 $519,600
$526,550

Gross Margin $1,104,583 $1,222,733 $1,488,750 $1,790,800
$2,157,450
Gross Margin % 69.04% 71.09% 74.44% 77.51% 80.38%
Marketing Expense Budget 2006 2007 2008 2009 2010
Advertising $4,848 $5,000 $5,200 $5,400 $5,600
Dues $1,940 $2,250 $2,450 $2,650 $2,800
Meals & Entertainment $2,020 $2,400 $2,600 $2,800 $3,000
Printed Materials $9,700 $10,800 $12,900 $14,500 $16,000
Public Relations $5,600 $5,850 $6,350 $6,550 $7,200
Sponsorships $6,868 $7,200 $7,650 $7,800 $8,400
Travel $4,444 $4,600 $4,900 $5,200 $5,600
Web Support $4,848 $5,500 $6,000 $6,800 $7,500
Other $600 $600 $800 $1,000 $1,200
------------ ------------ ------------ ------------ ------------
$52,700 $57,300
Percent of Sales 2.55% 2.57% 2.44% 2.28% 2.13%
Contribution Margin $1,063,715 $1,178,533 $1,439,900
$1,738,100 $2,100,150
Contribution Margin / Sales 66.48% 68.52% 72.00% 75.23%
78.25%
$0
$20,000
$40,000
$60,000
$80,000

$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
Contribution Margin Monthly
Franklin & Moore
Page 33
6.0 Controls
The focus of this marketing plan is to initiate action that will
generate additional revenues for
Franklin & Moore and better position us for the future. These
marketing challenges exist:
• We offer intangible "products."
• Our clients evaluate our capabilities based on things they see
and hear.
• Marketing is not well understood or received within our
profession.

Putting our marketing plan into action through the use of
professional and credible techniques
is what it is all about.
6.1 Implementation
We will maintain our focus with brief milestones meetings
every month, making sure each
partner understands his or her responsibility for maintaining our
image, improve customer
relations management, and increasing billable hours.
Table: ROI Calculator
Return On Investment (ROI)
Newspaper Local Trade Online Channel 4
Campaign Details
Total Impressions 600,000 1,000,000 500,000 0
Total Program Cost $30,000.00 $250,000.00 $40,000.00 $0.00
Response Rate 2.00% 2.00% 2.00% 0.00%
Conversion Rate 0.50% 1.00% 0.50% 0.00%
Average Customer Purchase $1,500.00 $3,000.00 $2,000.00
$0.00
Response
Total Responders 12,000 20,000 10,000 0
Total Buyers 60 200 50 0
Revenue Generated
$90,000.00 $600,000.00
$100,000.0
0
$0.00

Costs
Cost per Response $2.50 $12.50 $4.00 $0.00
Cost per Sale $500.00 $1,250.00 $800.00 $0.00
Total Campaign Profit $60,000.00 $350,000.00 $60,000.00
$0.00
Marketing ROI 200.00% 140.00% 150.00% 0.00%
Franklin & Moore
Page 34
Table: Customer Lifetime Value
Customer Lifetime Value
Customer Purchase Forecast:
Average Customer Lifetime (years): 6
Average number of purchases per year: 3
Average purchase value: $1,500.00
Average Gross Margin %: 40%
Gross Margin per purchase $600.00
Total Customer Purchases: $10,800.00
Customer Acquisition Costs:
Cost of marketing to a potential customer: $50.00
Average conversion rate: 6%
Subtotal Cost of attracting customer: $833.33
Other one-off costs for first-time customers: $0.00

Total Customer Acquisition Costs: $833.33
Unadjusted Customer Lifetime Value: $9,966.67
Adjusted Customer Lifetime Value:
Discount Rate: 0%
Net Present Value of Customer Lifetime
Value:
$9,966.67
6.2 Keys to Success
• Continue to leverage the in-house computer system to keep
efficiencies high and costs,
specifically payroll, to a minimum.
• Further develop areas of specialization to attract and retain
key clients.
• Continue to develop client referrals from individuals and
business contacts.
• Marketing training to develop networking and other
marketing skills within the
professional staff.
6.3 Market Research
We will continue to subscribe to Southern California Research
Institute to better understand
demographic and psychographic data for our region. Additional
research will involve tracking
competitive activities, gathering data on key business clients
and their industries, and

watching the evolution of software and its impact on our
industry.
Franklin & Moore
Page 35
6.4 Contingency Planning
These are the most likely changes in the marketing plan:
Industry or economic downturns - At this time, the targeted
industries are experiencing
solid growth in our area. If industry growth does not occur, we
will re-examine our select
industries and/or activities and change our focus and direction.
Loss of key resources - Losing key individuals in the firm could
result in lost accounts or lost
areas of expertise. We need to review our "Stage 2" strategy if
any person in the firm should
not be able to perform their function.
Online tax services - Competition from any geographic location
may emerge from online
services conducted by larger and better funded firms.
Tax law changes - Simplification of tax laws is unlikely, but
will demand that we would take a
"big picture" assessment of the firm's position, due to the
significant overhead commitments
that we have made.
6.5 CRM Plans

We have a CRM software in place to track all of our customers
which also integrates with our
billing and accounting system. Our current system, allows us to
store contact information,
account history, and additional notes added to our customer by
employees at our company.
We can also tag a customer with a "category" to help us better
serve that customer with
appropriate information. This system allows us to easily send
out direct mail brochures with
financial planning information to our personal finance
customers vs. sending out direct mailers
with business content to our business clients.
Franklin & Moore
Page 36
Appendix Table: Sales Forecast
Sales Forecast
Sales
Business Clients - Tax Preparation 0% $45,640 $29,400 $54,600
$73,640 $59,360 $34,440 $21,000 $22,680 $26,600 $23,500
$23,240 $33,900
Business Clients - Tax Planning 0% $27,710 $17,850 $33,150
$44,710 $36,040 $20,910 $12,750 $13,770 $16,150 $14,280
$14,110 $20,570
Business Clients - General Consulting 0% $14,670 $9,450
$17,550 $23,670 $19,080 $11,070 $6,750 $7,290 $8,550 $7,560

$7,470 $10,890
Business Clients - Other 0% $11,410 $7,350 $13,650 $18,410
$14,840 $8,610 $5,250 $5,670 $6,650 $5,880 $5,810 $8,470
Individual Clients - Tax Preparation 0% $35,860 $23,100
$42,900 $57,860 $46,640 $27,060 $16,500 $17,820 $20,900
$18,480 $18,260 $26,620
Individual Clients - Tax Planning 0% $13,040 $8,400 $15,600
$21,040 $16,960 $9,840 $6,000 $6,480 $7,600 $6,720 $6,640
$9,680
Consulting
0%
$9,780 $6,300 $11,700 $15,780 $12,720 $7,380 $4,500 $4,860
$5,700 $5,040 $4,980 $7,260
Individual Clients - Other 0% $4,890 $3,150 $5,850 $7,890
$6,360 $3,690 $2,250 $2,430 $2,850 $2,520 $2,490 $3,630
Total Sales $163,000 $105,000 $195,000 $263,000 $212,000
$123,000 $75,000 $81,000 $95,000 $83,980 $83,000 $121,020
Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Nov Dec
$24,301 $19,589 $11,365 $6,930 $7,484 $8,778 $7,762 $7,669
$11,180
Business Clients - Tax Planning $9,144 $5,891 $10,940 $14,754
$11,893 $6,900 $4,208 $4,544 $5,330 $4,712 $4,656 $6,788
Business Clients - General Consulting $4,841 $3,119 $5,792
$7,811 $6,296 $3,653 $2,228 $2,406 $2,822 $2,495 $2,465
$3,594
Business Clients - Other $3,765 $2,426 $4,505 $6,075 $4,897
$2,841 $1,733 $1,871 $2,195 $1,940 $1,917 $2,795
Individual Clients - Tax Preparation $9,682 $6,237 $11,583
$15,622 $12,593 $7,306 $4,455 $4,811 $5,643 $4,990 $4,930
$7,187

Individual Clients - Tax Planning $3,521 $2,268 $4,212 $5,681
$4,579 $2,657 $1,620 $1,750 $2,052 $1,814 $1,793 $2,614
Consulting
$2,641 $1,701 $3,159 $4,261 $3,434 $1,993 $1,215 $1,312
$1,539 $1,361 $1,345 $1,960
Individual Clients - Other $1,320 $851 $1,580 $2,130 $1,717
$996 $608 $656 $770 $680 $672 $980
Subtotal Direct Cost of Sales $49,975 $32,195 $59,789 $80,635
$64,998 $37,711 $22,997 $24,834 $29,129 $25,754 $25,447
$37,098
Appendix
Page 37
Appendix Table: Sales Breakdown by Partner
Sales by: Partner
Sales
Franklin $16,200 $14,500 $40,500 $49,500 $11,500 $9,500
$6,500 $6,600 $9,800 $8,800 $5,500 $14,400
Moore $17,000 $12,800 $19,600 $48,500 $19,200 $9,200
$6,600 $6,800 $1,000 $8,800 $5,600 $14,500
Benning $16,000 $10,200 $36,000 $44,500 $16,000 $8,000
$4,100 $4,200 $7,200 $4,800 $4,500 $11,500
Sonnett $15,800 $9,200 $34,500 $40,000 $13,200 $7,800 $3,800
$2,600 $6,800 $4,200 $3,800 $11,100
Cummings $14,800 $9,100 $34,000 $42,000 $12,850 $7,700
$4,200 $4,200 $6,400 $4,150 $3,700 $11,000

Williams $14,500 $9,000 $30,400 $38,500 $13,000 $7,600
$4,000 $4,100 $6,200 $4,100 $3,600 $10,800
Other $68,700 $40,200 $0 $0 $126,250 $73,200 $45,800
$52,500 $57,600 $49,130 $56,300 $47,720
Total $163,000 $105,000 $195,000 $263,000 $212,000 $123,000
$75,000 $81,000 $95,000 $83,980 $83,000 $121,020
Average $23,286 $15,000 $27,857 $37,571 $30,286 $17,571
$10,714 $11,571 $13,571 $11,997 $11,857 $17,289
Appendix
Page 38
Appendix Table: Sales Breakdown by Segment
Sales by: Segment
Sales
Large Business $67,200 $46,750 $78,250 $102,400 $84,200
$53,100 $36,250 $38,400 $44,000 $39,400 $40,500 $42,400
Growth Business $57,000 $36,750 $68,250 $92,100 $74,200
$42,500 $26,250 $26,250 $28,000 $26,000 $24,900 $36,300
Individuals $38,800 $21,500 $48,500 $68,500 $53,600 $27,400
$12,500 $16,350 $23,000 $18,580 $17,600 $42,320
Total $163,000 $105,000 $195,000 $263,000 $212,000 $123,000
$75,000 $81,000 $95,000 $83,980 $83,000 $121,020
Average $54,333 $35,000 $65,000 $87,667 $70,667 $41,000
$25,000 $27,000 $31,667 $27,993 $27,667 $40,340
Appendix
Page 39

Appendix Table: Sales Breakdown by Specialization
Sales by:
Specialization
Sales
Medical/Health $2,992 $1,904 $3,536 $4,624 $3,536 $2,176
$1,088 $1,224 $1,360 $1,224 $1,360 $2,176
Dental $2,640 $1,680 $3,120 $4,080 $3,120 $1,920 $960 $1,080
$1,200 $1,080 $1,200 $1,920
Lodging $21,120 $13,440 $24,960 $32,640 $24,960 $15,360
$7,680 $8,640 $9,600 $8,640 $9,600 $15,360
Manufacturing $7,040 $4,480 $8,320 $10,880 $8,320 $5,120
$2,560 $2,880 $3,200 $2,880 $3,200 $5,120
Individual Revenues $33,440 $21,280 $39,520 $51,680 $39,520
$24,320 $12,160 $13,680 $15,200 $13,680 $15,200 $24,320
Other $95,768 $62,216 $115,544 $159,096 $132,544 $74,104
$50,552 $53,496 $64,440 $56,476 $52,440 $72,124
Total $163,000 $105,000 $195,000 $263,000 $212,000 $123,000
$75,000 $81,000 $95,000 $83,980 $83,000 $121,020
Average $27,167 $17,500 $32,500 $43,833 $35,333 $20,500
$12,500 $13,500 $15,833 $13,997 $13,833 $20,170
Appendix
Page 40
Appendix Table: Marketing Expense Budget
Marketing Expense Budget Jan Feb Mar Apr May Jun Jul Aug
Sep Oct Nov Dec

Advertising $624 $540 $504 $180 $204 $180 $180 $384 $432
$456 $540 $624
Dues $1,200 $0 $0 $60 $0 $120 $0 $0 $360 $0 $0 $200
Meals & Entertainment $260 $225 $210 $75 $85 $75 $75 $160
$180 $190 $225 $260
Printed Materials $1,248 $1,080 $1,008 $360 $408 $360 $360
$768 $870 $910 $1,080 $1,248
Public Relations $728 $630 $588 $210 $236 $210 $210 $450
$450 $530 $630 $728
Sponsorships $884 $765 $714 $255 $289 $255 $255 $544 $612
$646 $765 $884
Travel $572 $495 $462 $165 $187 $165 $165 $352 $396 $418
$495 $572
Web Support $624 $540 $504 $180 $204 $180 $180 $384 $432
$456 $540 $624
Other $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50
------------ ------------ ------------ ------------ ------------ -----------
- ------------ ------------ ------------ ------------ ------------ ---------
---
Total Sales and Marketing
Expenses
$6,190 $4,325 $4,040 $1,535 $1,663 $1,595 $1,475 $3,092
$3,782 $3,656 $4,325 $5,190
Percent of Sales 3.80% 4.12% 2.07% 0.58% 0.78% 1.30%
1.97% 3.82% 3.98% 4.35% 5.21% 4.29%
Appendix
Page 41
Appendix Table: Expense Breakdown by Partner

Expenses by Partner
Expenses
Franklin $750 $600 $600 $150 $150 $250 $250 $300 $300 $300
$600 $750
Moore $750 $600 $600 $150 $150 $250 $250 $300 $300 $300
$600 $750
Benning $650 $550 $600 $300 $300 $250 $150 $300 $300 $300
$500 $650
Sonnett $650 $550 $600 $300 $300 $200 $150 $300 $300 $300
$500 $650
Cummings $600 $500 $550 $300 $300 $300 $250 $300 $300
$300 $400 $550
Williams $600 $500 $550 $200 $200 $150 $200 $300 $300 $300
$400 $550
Moore $600 $500 $500 $100 $200 $150 $200 $300 $300 $300
$400 $550
Other $1,590 $525 $40 $35 $63 $45 $25 $992 $1,682 $1,556
$925 $740
Total $6,190 $4,325 $4,040 $1,535 $1,663 $1,595 $1,475
$3,092 $3,782 $3,656 $4,325 $5,190
Average $774 $541 $505 $192 $208 $199 $184 $387 $473 $457
$541 $649
Appendix
Page 42
Appendix Table: Expense Breakdown by Segment
Expenses by Segment

Expenses
Business $4,300 $2,900 $2,800 $1,000 $1,000 $1,000 $1,000
$2,000 $2,400 $2,400 $2,800 $3,300
Individual $1,300 $1,200 $1,000 $500 $500 $500 $300 $800
$1,000 $1,000 $1,200 $1,700
Other $590 $225 $240 $35 $163 $95 $175 $292 $382 $256 $325
$190
Total $6,190 $4,325 $4,040 $1,535 $1,663 $1,595 $1,475
$3,092 $3,782 $3,656 $4,325 $5,190
Average $2,063 $1,442 $1,347 $512 $554 $532 $492 $1,031
$1,261 $1,219 $1,442 $1,730
Appendix
Page 43
Appendix Table: Expense Breakdown by Specialization
Expenses by
Specialization
Expenses
Medical/Health $1,200 $1,200 $1,200 $500 $500 $500 $500
$800 $800 $800 $800 $1,000
Dental $1,200 $1,200 $1,200 $500 $500 $500 $500 $800 $800
$800 $800 $1,000
Lodging $1,000 $1,000 $1,000 $500 $500 $500 $500 $600 $600
$600 $600 $800
Other $2,790 $925 $640 $35 $163 $95 ($25) $892 $1,582
$1,456 $2,125 $2,390
Total $6,190 $4,325 $4,040 $1,535 $1,663 $1,595 $1,475
$3,092 $3,782 $3,656 $4,325 $5,190

Average $1,548 $1,081 $1,010 $384 $416 $399 $369 $773 $946
$914 $1,081 $1,298
Appendix
Page 44
Appendix Table: Contribution Margin
Contribution Margin
Sales $163,000 $105,000 $195,000 $263,000 $212,000 $123,000
$75,000 $81,000 $95,000 $83,980 $83,000 $121,020
Direct Cost of Sales $49,975 $32,195 $59,789 $80,635 $64,998
$37,711 $22,997 $24,834 $29,129 $25,754 $25,447 $37,098
Other Variable Costs of Sales $550 $560 $580 $320 $220 $225
$350 $420 $450 $350 $350 $480
------------ ------------ ------------ ------------ ------------ -----------
- ------------ ------------ ------------ ------------ ------------ ---------
---
Total Cost of Sales $50,525 $32,755 $60,369 $80,955 $65,218
$37,936 $23,347 $25,254 $29,579 $26,104 $25,797 $37,578
Gross Margin $112,475 $72,245 $134,631 $182,045 $146,782
$85,064 $51,653 $55,746 $65,421 $57,876 $57,203 $83,442
Gross Margin % 69.00% 68.80% 69.04% 69.22% 69.24%
69.16% 68.87% 68.82% 68.86% 68.92% 68.92% 68.95%
Marketing Expense Budget Jan Feb Mar Apr May Jun Jul Aug
Sep Oct Nov Dec
Advertising $624 $540 $504 $180 $204 $180 $180 $384 $432
$456 $540 $624

Dues $1,200 $0 $0 $60 $0 $120 $0 $0 $360 $0 $0 $200
Meals & Entertainment $260 $225 $210 $75 $85 $75 $75 $160
$180 $190 $225 $260
Printed Materials $1,248 $1,080 $1,008 $360 $408 $360 $360
$768 $870 $910 $1,080 $1,248
Public Relations $728 $630 $588 $210 $236 $210 $210 $450
$450 $530 $630 $728
Sponsorships $884 $765 $714 $255 $289 $255 $255 $544 $612
$646 $765 $884
Travel $572 $495 $462 $165 $187 $165 $165 $352 $396 $418
$495 $572
Web Support $624 $540 $504 $180 $204 $180 $180 $384 $432
$456 $540 $624
Other $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50
------------ ------------ ------------ ------------ ------------ -----------
- ------------ ------------ ------------ ------------ ------------ ---------
---
$1,535 $1,663 $1,595 $1,475 $3,092 $3,782 $3,656 $4,325
$5,190
Percent of Sales 3.80% 4.12% 2.07% 0.58% 0.78% 1.30%
1.97% 3.82% 3.98% 4.35% 5.21% 4.29%
Contribution Margin $106,285 $67,920 $130,591 $180,510
$145,119 $83,469 $50,178 $52,654 $61,639 $54,220 $52,878
$78,252
Contribution Margin / Sales 65.21% 64.69% 66.97% 68.63%
68.45% 67.86% 66.90% 65.00% 64.88% 64.56% 63.71% 64.66%
Appendix
Page 45

MARKETING PLAN
ACADEMIC VERSION: This sample marketing plan has been
made available to users of
Marketing Plan Pro®, marketing planning software published by
Palo Alto Software, Inc.
For Academic Use
Copyright © Palo Alto Software, Inc., 1998-2006 All rights
reserved.
Confidentiality Agreement
The undersigned reader acknowledges that the information
provided by
_________________________ in this marketing plan is
confidential; therefore, reader agrees not to
disclose it without the express written permission of
_________________________.
It is acknowledged by reader that information to be furnished in
this marketing plan is in all respects
confidential in nature, other than information which is in the
public domain through other means and
that any disclosure or use of same by reader, may cause serious
harm or damage to
________________________.
Upon request, this document is to be immediately returned to
_________________________.

___________________
Signature
___________________
Name (typed or printed)
___________________
Date
This is a marketing plan. It does not imply an offering of
securities.
1.0 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2.0 Situation Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
2.1 Market Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2.1.1 Market Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2.1.2 Market Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2.1.3 Market Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2.2 Industry Analysis and Distribution . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.3 Market Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
2.4 SWOT Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

2.4.1 Strengths . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
2.4.2 Weaknesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.4.3 Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.4.4 Threats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.5 Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.6 Product Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
2.7 Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2.8 Critical Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
3.0 Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
3.1 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
3.2 Marketing Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
3.3 Financial Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
3.4 Target Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
3.5 Positioning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
3.6 Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
3.7 Marketing Mix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
3.8 Marketing Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

4.0 Financials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12
4.1 Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
4.2 Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
4.3 Expense Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
5.0 Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14
5.1 Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
5.2 Contingency Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. 16
Table of Contents
1.0 Executive Summary
Introduction
Chef Vending (Chef), LLC is a family start-up business that
specializes in importing vending
machines and commercial food and beverage equipment from
Spain. Chef will penetrate the
vending industry with innovative, first to market, high quality
vending machines. Chef will

establish our own vending routes in the Southern and Central
Florida region. Chef also plan to
participate in the $321 billion food and beverage industry by
supplying high-quality innovative
equipment. With the establishment of one strategic alliance with
a national brand name in
either of their vending lines, Chef expect to easily exceed the
financial forecasts.
The Company
Chef Vending's mission is to be the leader in introducing
innovative, quality vending machines
and restaurant equipment to the market. Through close customer
contact and excellent
relationships, Chef will meet the needs of the customers.
Chef Vending, LLC, is a privately-held Florida corporation and
maintains an office and a small
warehouse in a mixed-use area of North Miami Beach, Florida.
Three of the four investors in the company have full operational
responsibility. Mauricio
Ordonez and Javier Palmera, the co-founders, have both
entrepreneurial and industry
experience. Charles Mulligan brings operational management,
marketing, and financial skills to
the operation.
The Products
Chef Vending will have two product lines, each for the various
markets it serves. The vending
products line will include the unique Sandwich Express
machine, a Fresh Orange Juice
machine and the Multi-line Dispenser. The restaurant equipment
products will be toasters,
espresso makers, and fresh juice squeezers.

Most of the products, such as Sandwich Express are innovative
machines that have functions
and advantages not found in today's common vending machines,
thus providing Chef Vending
a competitive advantage over more established competitors.
Chef plans to aggressively enhance the existing line in the
future. The immediate plans are to
include a larger model of Sandwich Express that will offer a
greater variety of sandwiches, and
a more diverse product line, such as pizza. Other products are in
the exploratory phase.
Chef is also pursuing supplier relationships with large
nationally-branded juice and sandwich
manufacturers, to customize the machines to their products.
This would enable Chef Vending
to supply machines to national companies and allow them to
brand the machines with their
product lines.
The Market
Revenue from U.S. vending consumable merchandise was $24.5
billion in 2002, an increase of
4.9% over 1998, according to the Automatic Merchandiser
magazine's State of the Vending
Industry Report in August 2000. Small companies, with sales of
less than $1 million, accounted
for 5.8% of the market and had projected sales for 1999 of
$1.35 billion. Three quarters of all
vending operators are classified in the small category.
Within the industry, snacks and cold beverages are the largest
product segments and these
two categories are the driving force of the industry. The food

category grew at a rate of 7%
last year, according to the Automatic Merchandiser. Cold
storage machines grew at an even
more impressive 42% in 2001, with this growth coming at the
expense of shelf-stable products.
According to the National Restaurant Association, revenues
from restaurants are expected to
Chef Vending
Page 1
reach $321 billion in 2001. This is a large and healthy industry
in our economy, and suppliers
to this industry are expected to benefit from this growth.
All of this indicates that a fast moving, innovative company that
can introduce enhanced
products to vending machine/restaurant equipment customers
stand to gain significant market
share in a relatively short time span.
Chef Vending will market its machines to three distinct market
segments including;
distributors, branded sandwich and juice manufacturers, and end
users. For the restaurant
equipment business Chef will focus on restaurants and hotels
and equipment supply companies.
Financial Considerations
The company has an initial start-up cost of approximately
$157,000 of which $125,000 will
come from a ten year SBA loan. Short-term borrowing will

provide Chef with an additional
$2,500 and the rest will be provided by investment capital.
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
2003 2004 2005
End users
Distributors
Sales By Year
2.0 Situation Analysis
Chef Vending is in their first year of operation. Their products
have received strong demand
from initial contacts with end users and distributors. Marketing
will be critical to generate
significant demand for the products. The basic market need is
for high quality, innovative
vending machines as well as restaurant equipment.

Chef Vending
Page 2
2.1 Market Summary
Chef has captured good information about the market and
knows a great deal about the
common attributes of the target customers. This information
will be leveraged to better
understand who is served, their specific needs, and how Chef
can best communicate with the
customers.
End users
Distributors
Other
Target Markets
Table: Market Analysis
Market Analysis
2003 2004 2005 2006 2007
Potential Customers Growth CAGR
End users 5% 2,457 2,580 2,709 2,844 2,986 5.00%
Distributors 4% 35 36 37 38 40 3.39%
Other 0% 0 0 0 0 0 0.00%
Total 4.97% 2,492 2,616 2,746 2,882 3,026 4.97%

2.1.1 Market Needs
Chef Vending is providing its customers with a wide selection
of innovative vending machines
and restaurant equipment. Many of the products have first to
market features not found on
competitors equipment. Chef seeks to fulfill the following
benefits that are important to their
customers.
• Innovative features- there are lots of vending and restaurant
equipment on the
market, customer demand innovation as a competitive edge.
• High quality machines- Equipment is expensive and customers
cannot deal well with
down time when equipment needs to be repaired.
• High quality food products- Vending machines are not
normally synonymous with high
quality food products. Chef Vending is changing this
perception.
Chef Vending
Page 3
2.1.2 Market Trends
Growth rates in both the vending industry and the restaurant
industry remain strong. This
growth is fueled by the changes in the workplace and workforce
that are causing workers to
consume more of their meals away from home. Away from home

food sales are expected to
increase by 53%, according to NAMA.
As more and more consumers eat away from home, the demand
for higher quality is also
growing. Vendors are now offering a full line of packaged
frozen meals in their machines.
Margins will increase as premium prices are being placed on
branded, high-quality products.
Demographic trends are affecting the industry. A large group of
young adults, who mainly
grew up on fast food, have emerged as an economic force. This
group's perceptions on fast
food, technology, and vending, will have a positive impact in
the vending business.
Furthermore, overall population growth rates, and immigration
trends particularly, will also
have a tremendous economic impact on the vending industry.
Much of the growth in both of
these areas will be in the Southeast, where Chef Vending is
poised to capitalize on these
trends.
0
500
1,000
1,500
2,000
2,500

3,000
2003 2004 2005 2006 2007
End users
Distributors
Other
Market Forecast
2.1.3 Market Growth
Studies by Automatic Merchandiser reflect an industry growth
rate of approximately 4.8% over
the last five years, matching the overall growth of the U.S.
economy.
Chef Vending
Page 4
0.00%
1.00%
2.00%
3.00%
4.00%

5.00%
End users Distributors Other
Target Market Growth
2.2 Industry Analysis and Distribution
The U.S vending industry is divided into three main segments:
1. Operators- Companies that buy and place vending machines
on their routes, sell the
product and service the machine, and range from small family
businesses to large
national companies.
2. Manufacturers- Companies that manufacture machines for
sale to operators.
3. Distributors- The link between the manufacturer and the
operator. Supplies the market
with both machines and products for operators.
The food and beverage industry is divided into similar
segments:
1. food and beverage Establishments- This segment covers the
entire spectrum of bars
and restaurants.
2. Suppliers- Companies that supply the establishments with all
of their food, paper, and
equipment needs.
3. Supply Houses- Acting as a distributor, these firms supply an

area with their required
supply needs.
Distribution in the vending industry typically runs through a
distributor. These distributors will
carry a brand of machine for sale in a defined geographic
region. In some instances,
manufacturers sell direct to operators or end users. Another
form of distribution is to be a
supplier to a nationally branded company. Similar distribution
patterns are established in the
food and beverage industry.
Chef Vending
Page 5
2.3 Market Analysis
Revenue from U.S. vending consumable merchandise was $24.5
billion in 2001, an increase of
4.9% over 2000, according to the Automatic Merchandiser
magazine's State of the Vending
Industry Report in August 2000. This figure includes both
machines and products. Small
companies, with sales of less than $1 million, accounted for
5.8% of the market and had
projected sales for 2001 of $1.35 billion. Three quarters of all
vending operators are classified
in the small category.
Within the industry, snacks and cold beverages are the largest
product segments, representing
29% and 25% of the industry, respectively. These two segments

are the driving force of the
industry. The food category grew at a rate of 7% last year,
according to the Automatic
Merchandiser. Cold storage machines grew at an even more
impressive 42% in 2002, with this
growth coming at the expense of shelf-stable products.
Broader economic and cultural trends are also positively
impacting the industry. Food sales
away from home have become a larger part of total food sales in
the U.S. since the 50's,
according to the Department of Agriculture. Technomic, a
Chicago-based research firm,
reports an increase in demand for takeout meals as the
percentage of two-parent households
declines, along with the decline of the three regular sit down
meals per day.
Consumer preferences about taste, price, nutrition, convenience,
and technology are changing.
These changes favor the vending industry, which now has the
opportunity to spot these trends
and develop their markets.
According to the National Restaurant Association, revenues
from restaurants are expected to
reach $321 billion in 2001. This is a large and healthy industry
in the economy, and suppliers
to this industry are expected to benefit from this growth.
2.4 SWOT Analysis
The following SWOT analysis captures the key strengths and
weaknesses within the company
and details the opportunities and threats that the industry faces.

2.4.1 Strengths
• Strong relationships with manufacturers.
• Excellent product line.
• Seasoned management team.
Chef Vending
Page 6
2.4.2 Weaknesses
• Lack of brand recognition because Chef Vending is a start up
organization.
• The need to take on debt to get the business off the ground.
• Chef's new and innovative product do not have a lot of
visibility in the U.S. yet.
2.4.3 Opportunities
• Participation in a growing market with a significant
percentage of the target market still
not aware that Chef and their products exist.
• The food market, while somewhat effected by economic
downturns is somewhat
immune because food in many forms is a basic necessity.
• A strong distributor network.
2.4.4 Threats
• Heavy equipment makes more expansive than regional
distribution more difficult.

• High capital costs.
• Future/potential competition from a national company.
2.5 Competition
Both the food and beverage and vending industries are highly
competitive. Price, Return On
Investment (ROI), reliability, and customer service are the
factors most effecting a buying
decision.
There are many large name brand companies with vending
machines in the market. Chef is
focused on creating a niche market for the innovative machines,
to compete with larger more
recognizable names. By being first to market, Chef has a unique
opportunity to brand
themselves and their machines.
Buying patterns are fairly consistent across the year.
Chef Vending
Page 7
2.6 Product Offering
Chef Vending has three vending machines and three lines of
restaurant equipment.
The vending products are:
1. Sandwich Express- This machine stores, in a refrigerated
unit, up to 140 pre-packaged

sandwiches. When an order is placed, the machine sends a
sandwich from the
refrigerator to the toaster, toasts the sandwich for a pre-
determined time, and at a
predetermined temperature. In approximately 60 seconds, a
fresh, delicious, hot
sandwich is served.
2. Fresh Orange Juice (OJ) Machine- This machine, as its name
implies, delivers a chilled
7 oz. cup of fresh squeezed orange juice. In a refrigerated unit,
the machine stores up
to 140 lbs. of juice oranges. This will yield approximately 110,
7 oz. cups. When an
order is placed, the machine will dispense, from its refrigerated
container, whole
oranges that will be sliced in half, and then each half is
pulverized for its juice. The
juice will run through a filtering system to keep out the seeds
and most of the pulp, to
finally provide the customer with a 100% all natural cup of OJ
in approximately 30
seconds.
3. Multi-line- These versatile, low-cost, easy-to-maintain
machines provide the end user
with a variety of vending options, from phone cards to
disposable cameras. Chef
Vending is able to provide customers with machines that have
either two, three, or four
product lines; this will provide flexibility to maximize unit
revenue.
The restaurant equipment products are:
1. Toasters- Coming with either a single or double toaster, these

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